The Malaysian government will introduce a national cement price control scheme under its new “Simen Rahmah” initiative, fixing cement prices for affordable housing projects at MYR290/t (US$68/t) from July 2026.
Housing and Local Government Minister Nga Kor Ming said the scheme, developed in collaboration with the Cement and Concrete Association of Malaysia, would reduce cement prices from prevailing market levels of around MYR425/t.
Under the programme, 50kg cement bags for smaller contractors will be sold at MYR17.50 compared to current market prices of almost MYR25/bag.
The government said the measure is intended to stabilise construction costs and help prevent further increases in housing prices amid inflationary pressures and global economic uncertainty.
According to the ministry, the initiative could support construction of up to 500,000 affordable housing units nationwide.
Nga described the programme as a significant subsidy effort by the Malaysian cement industry and said strict monitoring systems would be implemented through the Housing Integrated Management System (HIMS) to prevent misuse or resale of subsidised cement.
